Indian family offices to invest USD 30 billion in local startups by 2024

Indian family offices are expected to invest USD 30 billion in local startups by 2025, a new report by 256 Network and Praxis Global Alliance India said. This will make up for 30% of the USD 100 billion capital Indian startups are likely to raise over the next four years.

Family offices are private wealth management services that invest in assets to preserve and grow money for the rich. A family office can be a single-family office that is established in-house by ultra-rich families, or a multi-family office, set up by professional wealth managers who serve various rich clients.

According to the report titled “Turning Ideas to Gold,” there are about 140 family offices catering to Indian ultra-high net worth individuals (UHNIs) or those with a net worth of more than USD 30 million.

The total wealth in India has increased four-fold between 2000 and 2019, reaching USD 12.6 trillion in 2019, placing India fifth globally in terms of the number of UHNIs.

As the private wealth in the world’s second-most-populous country grows, the number of UHNIs is expected to cross 10,000 by 2024, up almost 100% from 5,996 in 2019. The total wealth held by the UHNIs will also grow to over USD 700 billion by then, as compared to USD 440 billion in 2019.

India’s some of the most prominent and active in-house family offices include PremjiInvest, the family office of Aziz Premji, chairman of the country’s IT giant Wipro, Catamaran Ventures, the family office of N.R. Narayana Murthy, co-founder of IT behemoth Infosys, RNT Associates, the family office of Ratan Tata, former Chairman of Indian conglomerate Tata Group, and Sharrp Ventures, the family office of Harsh Mariwala, chairman of consumer goods company Marico, among others.